Home Network Marketing Companies Cerberus to invest $600 million in Avon

Cerberus to invest $600 million in Avon

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According to the Wall Street Journal, Cerberus Capital Management LP is nearing a deal to buy 80% of Avon Products Inc.’s North American business, and nearly 17% of the parent company.

Cerberus will pay $170 million for the North American business, and an additional $435 million for the stake in the parent, which had a market value of $1.8 billion.

As part of the agreement, Cerberus will take three seats on Avon’s board of director and designate a new chairman.

 

Avon has been struggling globally and the North American business has seen sales falling steadily over the past seven years.

World-wide, Avon’s revenue declined 19% in the first nine months of 2015 to $5.3 billion.

Source: Wall Street Journal

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